Revenue accelerated to $479.0M in the latest quarter, representing 114.7% year-over-year growth, while gross margin contracted sequentially to 64.5% from a peak of 68.5%, suggesting potential pricing pressure or an unfavorable product mix shift.
Credo Technology Group Holding Ltd (CRDO) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | May'26 | Apr'25 | Apr'24 | Apr'23 | Apr'22 | Apr'21 | Apr'20 |
|---|
| Sales/Revenue | 1.59B | 1.34B | 436.77M | 192.97M | 184.19M | 106.48M | 58.7M | 53.84M |
| Revenue Growth % | 165.11% | 205.68% | 126.34% | 4.76% | 72.99% | 81.4% | 9.03% | - |
| Cost of Goods Sold | 523.98M | 426.77M | 153.87M | 73.54M | 78M | 42.46M | 20.42M | 7.73M |
| COGS % of Revenue | - | 31.96% | 35.23% | 38.11% | 42.35% | 39.88% | 34.79% | 14.36% |
| Gross Profit | 1.07B | 908.35M | 282.91M | 119.43M | 106.19M | 64.02M | 38.28M | 46.11M |
| Gross Margin % | 67.07% | 68.04% | 64.77% | 61.89% | 57.65% | 60.12% | 65.21% | 85.64% |
| Gross Profit Growth % | - | 221.07% | 136.88% | 12.46% | 65.89% | 67.24% | -16.98% | - |
| Operating Expenses | 562.1M | 463.34M | 244.91M | 156.49M | 127.43M | 85.98M | 63.51M | 44.03M |
| OpEx % of Revenue | - | 34.7% | 56.07% | 81.09% | 69.18% | 80.75% | 108.2% | 81.8% |
| Selling, General & Admin | 220.64M | 183.96M | 98.92M | 60.19M | 48.25M | 34.9M | 28.67M | 16.47M |
| SG&A % of Revenue | - | 13.78% | 22.65% | 31.19% | 26.19% | 32.78% | 48.84% | 30.6% |
| Research & Development | 341.46M | 279.38M | 145.99M | 95.53M | 76.77M | 47.95M | 34.84M | 27.56M |
| R&D % of Revenue | - | 20.93% | 33.43% | 49.51% | 41.68% | 45.03% | 59.36% | 51.2% |
| Other Operating Expenses | 0 | 0 | 0 | 765K | 2.41M | 3.13M | 0 | 0 |
| Operating Income | 504.96M | 445M | 38M | -37.06M | -21.23M | -21.97M | -25.23M | 2.07M |
| Operating Margin % | 31.74% | 33.33% | 8.7% | -19.2% | -11.53% | -20.63% | -42.99% | 3.85% |
| Operating Income Growth % | - | 1071.16% | 202.53% | -74.51% | 3.34% | 12.94% | -1318.45% | - |
| EBITDA | 542.68M | 480.04M | 59.94M | -23.29M | -11.72M | -17.18M | -23.02M | 3.88M |
| EBITDA Margin % | 34.11% | 35.96% | 13.72% | -12.07% | -6.36% | -16.13% | -39.21% | 7.21% |
| EBITDA Growth % | 297.99% | 700.94% | 357.38% | -98.68% | 31.76% | 25.38% | -692.58% | - |
| D&A (Non-Cash Add-back) | 29.58M | 35.04M | 21.94M | 13.77M | 9.51M | 4.79M | 2.22M | 1.81M |
| EBIT | 539.59M | 475.44M | 54.87M | -36.29M | -18.83M | -18.83M | -25.23M | 2.07M |
| Net Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 34.62M | 30.43M | 16.87M | 14.31M | 3.32M | -245K | -62K | 24K |
| Pretax Income | 539.59M | 475.44M | 54.87M | -22.75M | -17.91M | -22.21M | -25.3M | 2.1M |
| Pretax Margin % | 33.91% | 35.61% | 12.56% | -11.79% | -9.73% | -20.86% | -43.1% | 3.89% |
| Income Tax | 1.28M | 3.16M | 2.69M | 5.62M | -1.37M | -37K | 2.21M | 766K |
| Effective Tax Rate % | 0.24% | 0.66% | 4.9% | -24.73% | 7.63% | 0.17% | -8.76% | 36.56% |
| Net Income | 538.3M | 472.28M | 52.18M | -28.37M | -16.55M | -22.18M | -27.51M | 1.33M |
| Net Margin % | 33.83% | 35.37% | 11.95% | -14.7% | -8.98% | -20.83% | -46.87% | 2.47% |
| Net Income Growth % | 330.22% | 805.04% | 283.94% | -71.45% | 25.38% | 19.39% | -2170.05% | - |
| Net Income (Continuing) | 538.3M | 472.28M | 52.18M | -28.37M | -16.55M | -22.18M | -27.51M | 1.33M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.77 | 2.51 | 0.29 | -0.18 | -0.11 | -0.15 | -0.20 | 0.02 |
| EPS Growth % | 316.54% | 765.52% | 261.11% | -63.64% | 26.67% | 25% | -1192.9% | - |
| EPS (Basic) | - | 2.65 | 0.31 | -0.18 | -0.11 | -0.16 | -0.20 | 0.02 |
| Diluted Shares Outstanding | 194.38M | 188.23M | 181.16M | 155.09M | 146.56M | 145.01M | 139.95M | 72.68M |
| Basic Shares Outstanding | 186.01M | 178.54M | 167.5M | 155.09M | 146.56M | 142.51M | 139.95M | 72.68M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying CRDO stock.
For fiscal year 2026, Credo Technology Group Holding Ltd (CRDO) reported total revenue of $1.34B. This represents a 2380.0% increase compared to $53.8M in 2020.
Credo Technology Group Holding Ltd (CRDO) is profitable, generating $472.3M in net income for the fiscal year ending 2026 with a net profit margin of 35.4%.
Credo Technology Group Holding Ltd (CRDO) reported an operating income of $445.0M, resulting in an operating profit margin of 33.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Credo Technology Group Holding Ltd (CRDO) generated $908.3M in gross profit for the year, representing a gross profit margin of 68.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Hyperscale CapEx Cycle Dependency
Metrics are mathematically derived from official filings.
Hyper-Growth Driven by AEC Ramp
Credo's revenue trajectory has shifted from steady growth to an explosive acceleration, with the most recent quarter showing 114.7% year-over-year growth, a significant deceleration from the prior quarter's 157.0% but still indicative of a massive, ongoing product ramp.
The sequential revenue growth from $437.0M to $479.0M suggests the AEC product cycle is still in a strong expansion phase, though the deceleration in the year-over-year growth rate may indicate the initial, most explosive phase of the hyperscale deployment is maturing. The durability of this growth is now contingent on the successful transition to next-generation 800G and 1.6T architectures, which management's raised guidance appears to support.
Structural Margin Expansion in Progress
Gross margins have expanded from the low-60% range to a peak of 68.5%, suggesting Credo's 'N-1' node strategy is successfully translating into a sustainable cost advantage as volume scales, though the recent dip to 64.5% warrants monitoring.
The expansion from 62.4% gross margin in 2025Q1 to 68.5% in 2026Q3 indicates significant operating leverage and pricing power within the AEC product line. The subsequent decline to 64.5% in 2027Q1, despite strong revenue, may signal a shift in product mix toward lower-margin components or increased foundry costs, which could pressure the structural margin profile if the trend continues.
Operating Leverage Fully Unlocked
Operating income has scaled from a loss of $14.5M to a profit of $120.7M, demonstrating powerful operating leverage as R&D and SG&A expenses have grown at a fraction of the revenue rate, though the latest quarter shows a sequential decline in operating margin.
The transformation from a -24.2% operating margin to a peak of 36.8% is a direct result of the fabless model's high operating leverage, where incremental revenue flows through to profit at a high rate. The sequential drop to 25.2% operating margin in 2027Q1, driven by a sharp increase in R&D and SG&A, suggests management is reinvesting heavily, which may temporarily constrain margin expansion but is necessary to maintain the technical edge.
SBC Dilution Offsets Strong Core Earnings
Stock-based compensation has surged to $88.0M in the latest quarter, representing a significant non-cash expense that dilutes reported EPS and suggests the true owner's earnings are materially lower than the net income figure implies.
The $88.0M SBC expense in 2027Q1 is nearly double the $49.7M from the prior quarter and now represents a substantial portion of operating costs. This high level of SBC, common in high-growth tech, indicates that a meaningful portion of the company's profitability is being used to compensate employees with equity, which dilutes existing shareholders and should be factored into any valuation model.
R&D Investment Re-Accelerates
Research & Development expenses have re-accelerated to $114.5M in the latest quarter, a 26.5% sequential increase, suggesting a strategic pivot to invest in next-generation SerDes and AEC technologies to defend the company's performance moat.
After a period of relative cost discipline, the sharp increase in R&D spending indicates management is prioritizing long-term competitiveness over short-term margin expansion. This investment is critical to maintaining the power-efficiency advantage of the 'N-1' node strategy, but it also introduces execution risk if the resulting products do not achieve the expected market adoption.
Margin Sustainability Under Scrutiny
The recent decline in both gross and operating margins, despite record revenue, presents the strongest challenge to the bull case, suggesting potential pricing pressure or an unfavorable product mix shift that could erode the company's structural cost advantage.
A short-seller would focus on the sequential margin compression from 68.2% to 64.5% gross margin and from 35.7% to 25.2% operating margin as evidence that the peak profitability phase may have passed. This trend, if it continues, could indicate that the AEC market is beginning to commoditize or that Credo is losing pricing power as competition intensifies, directly challenging the narrative of a sustainable, high-margin moat.